Newsletter – December 4, 2019
AIR FREIGHT UPDATES
Struggling flag carriers on three continents are running out of optionsfreightwaves.comThree financially strapped flag carriers — Air India, Alitalia and South African Airways (SAA) — are running out of options to remain aloft.After several attempts to sell Air India, Prime Minister Narendra Modi’s government is considering a change to airline ownership restrictions that currently require that operational control rest with Indian nationals,…Read more here.
OCEAN FREIGHT UPDATES
Shipowners and carriers count the cost of scrubber retrofit snarl-uptheloadstar.comThe idle containership fleet has soared to 225 vessels, 1.32m teu, but more than 60% of the inactive capacity is due to scrubber retrofitting ahead of the IMO 2020 regulations.Based on consultant Alphaliner’s latest data, there are 83 ships, with a total capacity of 839,130 teu, either undergoing scrubber retrofits or at anchor awaiting their turn at shipyards. Read more here.
Commentary: Bigger is better, but too big is worse…freightwaves.comThe U.S. Navy can project military power using the largest piece of military equipment ever built. The USS Gerald R. Ford, commissioned in 2017, is the first of the new Ford-class aircraft carriers, and it deploys a great deal of firepower. The Ford-class also offers efficiencies compared to the similar-sized but older Nimitz-class carriers. Read more here.
Improvements to PierPass have smoothed truck trafficfreightwaves.comAn appointment-based system for trucks picking up containers at the Port of Los Angeles and Port Long Beach has been a success, said PierPass, which manages the system for the West Coast Marine Terminal Operators Agreements (WCMTOA), whose members operate the 12 container terminals at the port. Read more here.
INTERNATIONAL BUSINESS – GOVERNMENT UPDATES
Here’s What Happens to Markets If U.S. Tariffs on China Kick in Dec. 15bloomberg.comPresident Donald Trump’s latest missives on trade are a wake-up call to markets close to record highs that a major deadline is looming with China.The Dec. 15 flashpoint on tariffs was thrown into sharp relief Tuesday when Trump said he sees no urgency to complete a deal, right after he threatened an assortment of trading partners with levies. Read more here (login required).